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Former NYSE CEO Richard Grasso on the problems with the current market system.
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Here with first hand insight Dick Grasso.
Former chairman and CEO of the New York Stock Exchange -- is great to have you here -- absolute pleasure Gerri it's a pleasure to be here thank you for inviting me I want to start with this idea we were talking about before we came to air which is that investors are losing confidence losing confidence big time.
Some 50% of Americans polled say they don't have trust in the stock markets what's behind that it's very sad and it couldn't come at a worse moment.
For individual investors and for those who were -- -- investors through their pension plans of their iris Tokyo's.
Because if you look at what's happened since may of 2010 Jerry.
Everyone's been railing against so called high frequency trading algorithmic trading all sorts of programming type delivery.
No one I mean no one can sit here myself included -- give you a Cogent answer as to just.
What is right about that copper trading in what is wrong about that trading.
I think the SEC has a much broader problem than just what is so called HFT's the whole structure of the market in this country.
We've got dark pools.
We've got.
Semi light pools and we've got stock exchanges we've gotten virtually sixty different places where IBM trades.
Under all different rules and just -- that -- people in here just a little bit so dark pools.
A public reporting that -- don't know what's going on it to the dark it's like it's trading in a closet as opposed to being on one of the big exchanges like the New York Stock Exchange correct Jerry and and if you turn the clock back you know today.
Good old days not that we should not that we should but the day I left the exchange we had an 84 share of market meaning.
Out of every hundred shares of IBM the traded.
84 traded on the big board -- that was the pricing barometer.
For anyone -- want -- compete not anymore it's not the case and as a matter of fact one critic of the market right now.
Is calling.
The volume of the shares that are traded on the New York Stock Exchange toxic trades trades that nobody else wants to handle.
But the traits of people want -- handle that are legitimate are actually going into these dark pools reinforces what I just said Jerry.
The first stop is the dark pools the second stop is the second or the semi like pool.
The third stop is the end of the line the exchanges that's -- the structure of the market in this country.
Needs to be -- defined by the SEC and why it's so horrible.
It scared investors out of the market at a time when they've been willing to accept just take one year.
22 basis points return on their money point 22.
At a time when the market is up 20%.
And that's just say -- sat.
